An exception for the exterior-only option is limited to purchase cases, rate and term refinances, simple refinances, and HECMs. An exception for the desktop-only option is limited to purchase cases. Appraisals completed in connection with the servicing of FHA's forward or HECM portfolios may accept either an exterior-only or desktop appraisal.
Acceptability of using the Exterior-Only or Desktop-Only by FHA program type, additional instructions, appraisal forms and amended certification requirements are provided in Mortgagee Letters 2020-05 and 2020-20 available at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
HQ Policy Determination - COVID-19 guidance.